Equity Investments

US Small Cap

Philosophy

DuPont Capital believes that stocks are regularly mispriced due to investors’ overconfidence or overreaction to short-term events such that strong relative risk-adjusted returns can be achieved by systematically identifying high quality companies trading at reasonable valuations as stock prices generally follow business fundamentals over the long-term.

Process

The Small Cap Equity investment process integrates proprietary quantitative techniques, fundamental research and refined risk management tools to construct portfolios that, over a market cycle, should deliver consistent excess returns with lower volatility relative to the Russell 2000 index. By systematically ranking the relative attractiveness of all securities in the Russell 2000 Index daily, DCM has the advantage of implementing “best ideas” quickly into the portfolio and monitoring existing holdings for any signs of deteriorating alpha. Risk is carefully considered through the entire investment process: quantitative models intricately assess potential risks to a company’s profitability, fundamental analysts delve more deeply into risks that may impact earnings quality, and the portfolio construction effort considers the incremental impact of each security to the overall strategy’s target tracking error of 3-6% versus the Russell 2000 Index.

Product Overview

Assets Under Management:

Strategy Inception:

Relevant Information:

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